Is there any way to fix this, or is it just time to upgrade?

My Droid started giving me messages that I was out of space or memory. I cleared my call log, deleted texts, moved apps to the SD card, deleted apps, cleared caches, rebooted. That freed up some space and the messages stopped, but here's the thing - I only have 225.8MB memory total, and it is supposed to be 512MB. I have no idea what happened to the rest of it. The phone was just sitting on my desk, hasn't been dropped, hasn't gotten wet. Any ideas?

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